Snap shares closed in the red in the US Monday trading session, ahead of news the tech firm is replacing its chief financial officer with an Amazon veteran. The news was revealed in a financial filing late Monday.
Existing CFO Andrew Vollero has served in the role for around two years. However, after the disappointing Q1 earnings report last week, the company has moved to replace him with ex-Amazon executive, Tim Stone.
Snap shares ended 0.56% lower at $10.74, in the US Monday. The stock is trading higher in after-hours activity.
Vollero’s departure details
Snap’s financial filing detailed the CFO change. Vollero will serve in the role until May 15. He will then remain with the firm as an advisor until August 15, in which time he will earn one year’s base salary.
“Mr. Vollero has confirmed that this transition is not related to any disagreement with us on any matter relating to our accounting, strategy, management, operations, policies, or practices (financial or otherwise), Snap said.
Snap’s CEO, Evan Speigel thanked Vollero or his hard work, which included taking the business through its stock market listing and reporting its first earnings reports.
“I am deeply grateful for Drew and his many contributions to the growth of Snap,” Spiegel said.
“He has done an amazing job as Snap’s first CFO, building a strong team and helping to guide us through our transition to becoming a public company. The discipline that he has brought to our business will serve us well into the future. We wish Drew continued success and all the best,” he added.
Snap’s new CFO big pay deal
Snap’s incoming CFO, meanwhile, comes to the tech firm after a 20-year career with Amazon, where his latest role was senior Vice President of finance.
Stone will earn a basic salary of $500,000 per year, plus some stock units and additional stock options.
The news that a new CFO will be at the helm for Snap seemed to buoy investors as the stock moved higher after the filing was released.